Glossary Terms

apy

The percentage, required by Truth in Savings regulations, to be disclosed on interest-bearing deposit accounts that reflects the total interest to be earned based on an institution's compounding method, assuming funds remain in the account for a 365-day year.

rate

Percentage a lender or depositor earns for permitting someone else to use their money, usually expressed as an annual percentage.

min Deposit

The minimum that must be deposited to open the account, and earn the stated rate of interest.

compounding

Earning interest on previous interest earnings.

safe And Sound Rating

Bankrate's proprietary rating on a 1 (low) to 5 (high) scale reflecting the financial health of the institution relative to its peers based upon information filed with regulators.